Types of bankruptcy

The U.S. Bankruptcy Code includes different types of protection for debtors, each with its own set of rules and costs which often come as a surprise to consumers who say they're already broke.

While there are common expenses, some could be higher related to the complexity of the case. Here's what to expect:

Chapter 7

Available to both individual and business debtors. Its purpose is to achieve a fair distribution to creditors of the debtor's available assets. Most debts are discharged, which provides a fresh financial start.

Average length of case: 4 to 6 months, possibly longer

Initial court filing fee: $299

Amended document filing fee: $26

Financial counseling session: $25 to $50

Lawyer fees: $600 to $3,000, often paid before filing

Chapter 13

Available for an individual with regular income whose debts do not exceed specific amounts. It is typically used to budget some of the debtor's future earnings under a plan through which creditors are paid in full or in part.

Average length of case: 3 to 5 years

Initial court filing fee: $274

Amended document filing fee: $26

Financial counseling session: $25 to $50

Lawyer fees: $3,500, set by bankruptcy judge and often in a payment plan

Other relief

Chapter 11

Available for business. Its purpose is to rehabilitate a business so it can remain open or reorganize an individual's finances through a court-approved reorganization plan.

Chapter 12

Designed to give special debt relief to a family farmer with regular income from farming.

Source: American Bankruptcy Institute, local lawyers, Daily Herald reporting